Zee Entertainment Enterprises Limited Annual Report 2009-10
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Zee Entertainment Enterprises Limited Annual Report 2009-10 Taking entertainment places FORWARD LOOKING STATEMENTS In this Annual Report, we have disclosed forward-looking information to enable investors to comprehend our prospects and take investment decisions. This report and other statements – written and oral – that we periodically make contain forward-looking statements that set out anticipated results based on the management’s plans and assumptions. We have tried wherever possible to identify such statements by using words such as ‘anticipate’, ‘estimate’, ‘expects’, ‘projects’, ‘intends’, ‘plans’, ‘believes’, and words of similar substance in connection with any discussion of future performance. We cannot guarantee that these forward-looking statements will be realised, although we believe we have been prudent in assumptions. The achievements of results are subject to risks, uncertainties, and even inaccurate assumptions. Should known or unknown risks or uncertainties materialise, or should underlying assumptions prove inaccurate, actual results could vary materially from those anticipated, estimated, or projected. Readers should keep this in mind. We undertake no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise. contents 01-15 Where are we? 08 Regional GEC 02 Zee Network 10 Sports TAKING 04 Hindi GEC 12 International ENteRTAINMENT 06 Cinema 14 Taking Entertainment Places PLACES 16 Chairman’s Message 33 Alternate Lifestyle 18 MD & CEO’s Review 34 Sports 20 Corporate Information 36 Regional GEC 21 Mission & Values 43 International Presence 16-48 22 Financial Highlights 44 Music OpeRATIONAL 24 Operational Highlights 46 English Content 26 ZEE - The 5 Minute Read 48 Our People ReVIEW Business Division Summary 28 Hindi GEC 30 Cinema 49 Notice 103 Standalone Financial 55 CFO Certification Statements 56 Directors’ Report 141 Consolidated Financial 49-172 66 Statement Pursuant to Section 212 Statements GoVERNANCE & 70 Report on Corporate Governance Attendance Slip and 81 Shareholders’ Information Proxy Form FINANCIALS 88 Management Discussion and Analysis 12 56 16 INTERNATIONAL PRESENCE CHAIRMAn’S MESSAGE DIRECTORS’ REPORT are we we are here Taking Entertainment Places Operational Review Governance & Financials 3 It is the entertainment buffet extraordinaire of the century, and everyone is invited. We offer one of the largest spreads in the business with innumerable flavours, exciting genres, as well as a mouthwatering array of programming. The medium, the message and the media – we have a major presence in each. We bring entertainment to people in 167 countries across the globe. We are the destination for seekers of ‘Indian flavoured’ entertainment as well as global programming. We appeal to the intellect, as well as the emotion. We deliver fact as well as fiction. Our eclectic programming range includes prime time drama series, reality shows, television movies, theatrical films, specials and daytime dramas, sports coverage, regional and international language based entertainment. We are here to provide the best in entertainment. We have made people recognise entertainment as Zee Entertainment. We are Zee Network. With innovative shows, culturally relevant content, aesthetic presentation and a truly multi genre buffet of entertainment that suits every palate… …We are here to stay! and here Taking Entertainment Places Operational Review Governance & Financials 5 We were the first to be here. We are still the first choice of audiences in the Hindi GEC genre. As a pioneer and the flagship channel of the group, Zee TV had a headstart in the Hindi Entertainment Channel business. It is a lead we have maintained over the past eighteen years, across continents. Zee TV is the first choice Hindi entertainment channel for the South Asian diaspora worldwide. Our popularity is a testimony to the consistent innovation and freshness we bring to our programming. From the very beginning we introduced a variety of programming like prime time drama series, television movies, theatrical films, specials and daytime dramas, each appealing to a segment of the audience. Even today our popular reality shows such as Sa Re Ga Ma Pa and Dance India Dance are redefining “entertainment” and connecting with audiences. For millions of people who love Hindi entertainment around the world… …We are here to sustain their interest! and here Taking Entertainment Places Operational Review Governance & Financials 7 Lights. Camera. Action. Roll. Edit. Release. Zeetelecast. It is an ongoing festival of films everyday on ZEE Entertainment Cinema channels. Zee is the one of the most favored home viewing channel for people seeking quality film entertainment. We have different cinema channels dedicated to specific genres such as - Zee Cinema, Zee Premier, Zee Action and Zee Classics. Together these channels cater to a variety of audiences, and it’s your own personal festival of films running on your TV. These channels command a sizeable lead in terms of eyeballs, over their nearest rivals. With a variety of channels, some of the best and most loved old and new films, and an ever increasing viewership… …We are here to expand! and here Taking Entertainment Places Operational Review Governance & Financials 9 Namaste, Sat Sri Akal, Nomoshkar, Namaskar, Namaskara, Namaskaram Baagunnara. Hindi, Punjabi, Bengali, Marathi, Kannada and Telugu – With our presence in these homes we celebrate the incredible diversity of cultures our country offers. Zee’s regional channels regale viewers with ethnically nuanced content, issues that are regional and entertainment that suits the specific taste of the region. Our regional channel foray is a recent one with the merger of the regional channels into the ZEE Entertainment palette. With increasing audience loyalty, increasing share of eyeballs, and advertising spends... …We are here to grow! and here Taking Entertainment Places Operational Review Governance & Financials 11 Its love all for cricket and a sixer for tennis! Be it cricket or tennis, football or motor racing, for millions of sports enthusiasts, viewing sport programming is the preferred genre of entertainment! ZEE caters to this avid sports loving community through its Ten Sports and Zee Sports transmission systems. Ten Sports is the leading sports channel for Asians and has retained its number one position since its launch. It is amongst the world’s leading producers and distributors of cricketing content and it owns the rights to broadcast games of half of the world’s popular cricket boards. The channel also has exclusive, long term broadcast rights for the UEFA Champions League, US Open Tennis, and WWE. The channel also broadcasts and distributes international football, cricket and motor sport content on behalf of various rights holders across the world. With an exciting line up of sports programming, shot and edited in a manner to raise the feeling of being part of the event, we can safely say that in the sports genre… …We are here to win! and here Taking Entertainment Places Operational Review Governance & Financials 13 …and in USA, in Europe, in Middle East, Asia Pacific and Africa. In fact, we are almost everywhere. We are here for the South Asian diaspora that is nostalgic of their homeland and hungry for culturally relevant entertainment. Zee reaches 500 million people across 167 countries and 5 continents. Zee has nurtured this multi ethnic, multi lingual audience since its early years through a variety of platforms. Zee TV USA is the un-challenged leader in South Asian Entertainment across all Americas. Through its base in UK, Zee reaches 32 countries in Europe. Zee MENAP is the Zee arm that caters to audiences in Middle East, North Africa and Pakistan. It also caters to audiences in East and South Africa, as well as the Indian Ocean islands of Madagascar and Mauritius, as well as 43 countries in the Asia Pacific region. Zee TV and the various ZEE channels deliver a taste of home culture and entertainment to the far from home, South Asian expatriate communities. For them… …We are here to relate! here and Taking Entertainment Places Operational Review Governance & Financials 15 Taking Entertainment Places where none others have been before… …. and making Zee channels the destination to be for people seeking entertainment. Taking entertainment places is what we have Therefore, across every segment of the media value been doing ever since we began. It is unavoidable, chain ZEE have been instrumental in defining the especially when you consider that a pioneering spirit is shape of things to come. our second nature. Today, ZEE is a name synonymous with Satellite Zee Entertainment Enterprises Limited (ZEEL) is Television in India, with a presence spanning over not just the parent Organization of some of India’s 167 countries. But to us, that is only the beginning. most preferred entertainment brands. It is a also a Our organizational energies are focused on delivering trailblazing leader in the overall context of the media the next paradigm in entertainment and reaching out and entertainment industry in India. to a larger audience. Quite literally therefore, we are working on taking entertainment places. Zee Entertainment is… Thus, across all the genres and verticals we operate in, … the first media Company to launch a Hindi General the underlying theme is that of consistent innovation. Entertainment Channel (GEC), before it became the largest genre … the first Indian media Company to list on a stock exchange, before the capital market became a preferred route for existing and newer entrants … the first to launch a 24 x 7 news channel, before round-the-clock news channels became the norm … the first to corporatise film making in India … the first to launch and manage an MSO on a pan- India basis 16 Zee Entertainment Enterprises Limited | Annual Report 2009-10 Chairman’s Message Subhash Chandra, Chairman Dear Shareholders, During the last fiscal year, the Indian economy has done fairly well for itself. Despite the global financial crisis, India has been resilient and emerged as one of the fastest growing and one of the more stable economies of the world.